UK Economy Surpasses Forecasts with Unexpected Growth
Britain's economy grew by 0.2% in March, surpassing the anticipated flat reading. The GDP rose 0.7% in Q1 2025, but long-term growth remains uncertain. With increased infrastructure spending proposed by Prime Minister Keir Starmer, economic revival efforts face challenges from U.S. trade tariffs and rising employment taxes.
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- United Kingdom
The United Kingdom's economy demonstrated resilience in March with a growth rate of 0.2%, defying expectations of stagnation. Official figures released on Thursday highlighted this better-than-expected performance.
The Office for National Statistics reported a 0.7% increase in the country's gross domestic product for the first quarter of 2025, surpassing the 0.6% forecast. Prime Minister Keir Starmer and Finance Minister Rachel Reeves are spearheading initiatives to rejuvenate the economy by prioritizing infrastructure spending and reforms aimed at bolstering investment.
Nonetheless, the Bank of England issued a word of caution, projecting that this apparent uptick may not endure, with growth predicted to hover around 1% this year before potentially rising to 1.5% by 2027. Concerns are further amplified by anticipated global economic slowdowns due to U.S. President Donald Trump's trade tariffs and domestic hesitations stemming from increased employment taxes.
(With inputs from agencies.)
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